By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 1 (MarketsFarm) – The ICE Futures canola market was stronger on Thursday, seeing a chart-based correction amid ideas recent losses were overdone.
Gains in outside markets provided spillover support, with Chicago soyoil, European rapeseed and Malaysian palm oil all higher on the day. Strength in crude oil was supportive for the world vegetable oil markets.
However, a firmer tone in the Canadian dollar put some pressure on canola. Relatively favourable Prairie weather conditions were also bearish, with timely rains in the forecast for some dry areas.
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About 41,417 canola contracts traded on Thursday, which compares with Wednesday when 40,830 contracts changed hands. Spreading accounted for 23,194 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, with supportive chart signals and broad weakness in the United States dollar behind some of the gains.
Forecasts calling for hot and dry Midwestern weather were also supportive, as the soybean crop will need some timely rains over the next few weeks.
Weekly export sales data is delayed until Friday, due to Monday’s Memorial Day holiday. While solid sales are expected, large Brazilian crops are starting to displace U.S. beans in the global markets, with talk that U.S. importers were even bringing up some Brazilian soybeans of their own.
CORN was also underpinned by the hot and dry Midwestern weather, but settled mixed with losses in the old crop July contract.
Updated drought maps show an expansion of areas dealing with drought across the U.S. Corn Belt, with little significant rain in the 10-day forecast.
Weekly U.S. ethanol data showed average production of the renewable fuel at just over a million barrels per day in the past week, which marked the first million barrel per day average since April.
WHEAT was up across the board, with renewed uncertainty over Ukrainian exports behind some of the strength amid reports that Russia was obstructing movement and delaying inspections through Black Sea ports.
Reports of damage to Chinese wheat crops due to untimely rains were another supportive influence, while Saudi Arabia was reportedly in the world market tendering for nearly half a million tonnes of wheat.
